In Q2 of 2024, each of the “Detroit Big Three” automakers suffered its own sort of financial issues, leading to a rather substantial drop in share prices for that trio. However, it seems as if Stellantis is having a bit more trouble righting the financial ship than Ford or General Motors, as CEO Carlos Tavares recently told reporters that the automaker may wind up killing off some of its 15 brands amid sinking profits – particularly, in the U.S. Now, Stellantis may also soon take additional action as it seeks to turn things around, too.
According to Automotive News, Stellantis is now offering a voluntary separation program to some of its salaried U.S. workforce from the vice president level down. There is no minimum service requirement involved in this process, but it’s currently unclear how many of the 11,000 salaried U.S. workers are eligible for the program at the moment, nor how many workers Stellantis is aiming to reduce its headcount by. Regardless, those that are eligible will receive further details about how to proceed in mid-August. The goal of this program, as is usually the case, is to pare down the company’s workforce in a more amicable way versus all-out layoffs.
“With our commitment to executing our Dare Forward 2030 strategy, we must continue to adapt by streamlining operations and finding efficiencies that will enhance our competitiveness to ensure our future sustainability and growth,” Stellantis said in an email sent to workers.
Ford is no stranger to this type of tactic either, having just completed several rounds of layoffs globally last summer. The Blue Oval reportedly trimmed around 1,000 salaried positions in its most recent reduction, and also initiated early retirement buyouts for select United Auto Workers (UAW) represented employees earlier this year.
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Comments
At Stellantis, CEO Carlos Tavares is the biggest problem. He needs to thrown out on his arse!
Most useless person in the company!
Agree, but maybe Mary and Jimbo should be on the list too.
Agreed. Need COMPLETELY out of touch with the North American market.
I was living in Detroit when Sergio Marchione came to town to save Chrysler; and he did. I worked at the Borders Books in Birmingham when he came in one morning. I asked if I could help him. He put out his hand and said , “We’re going to be all right.” There was certainly no guarantee that was true but he kept his word. He passed away from cancer after sealing the deal with the French. All that work and for what?